IDR Marketing Spend 2023

Jan 11, 2024 | Insights, Restaurant Research

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Executive Summary

  • Total 2022 net marketing spend for the $1B+ Chain restaurants increased +7.4% y/y to $7.4B, reflecting +9.2% systemwide sales growth partially off-set by lower net marketing spend as a percent of sales which has steadily declined from 3.2% in 2016 to 2.5% in 2022 (partially reflecting that full-serve chains have sharply curtailed their ad spend post-covid).
  • Chain restaurants have been losing their share of voice as their total net restaurant marketing spend as a % of total domestic marketing spend across all industries declined from 2.9% in 2017 to 2.3% in 2022.
  • Further, a relatively high level of creative ad agency turnover is notable with 10 chains switching creative ad agencies over the last 12 months (Bob Evans, Buffalo Wild Wings, Church’s, Domino’s, Dunkin’, Krispy Kreme, Papa John’s, Popeyes, T.G.I. Friday’s, Wingstop).
  • While digital marketing  across all domestic industries grew +7% y/y during 2022 (to a 49.1% mix of total marketing spend), growth slowed to +2.4% for the LTM 9/30/23 period.
  • Also, several chains have increased and/or reallocated more funds to support more cost-effective national advertising in 2023 as marketers look to increase their marketing ROI.

Net Marketing Spend 2018-2022

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